Skywest Case Study
Brandon Cisco
15 March 2013
GBA 490 Case Analysis
SkyWest, Inc. Competitive Analysis
Table of Contents
1. Executive Summary………………………………………………………………………...3 2. Competitive Analysis……………………………………………………………………….5 3. Recommendations………………………………………………………………………….7 4. Appendix…………………………………………………………………………………...9 5. Sources……………………………………………………………………………………22
Executive Summary
This report examines the factors pertaining to SkyWest, Inc. (referred to in this document as SkyWest) and its response to all forces present in the airline industry. Analytical tools used in this report are: * An analysis of the airline industry macro-environment * A Five-Forces model of the pressures in the airline industry * A study of the drivers of change and industry dynamics * Identification of SkyWest’s main rivals * The airline industry’s key success factors * A strategic group map of the industry * An analysis of SkyWest’s strategy and business model including financial performance * An identification and critique of SkyWest’s strategy * A comparative weighted assessment of SkyWest’s competitive advantage * An analysis of SkyWest’s strengths, weaknesses, opportunities, and threats (SWOT)
Conclusion: This report concludes that SkyWest is a strong industry leader because of excellent reputation for being efficient and agreements with other airlines. However, because of contracts with the other airlines SkyWest is not immune to the same issues that affect the industry as a whole. As of 2009 SkyWest primarily operated through partnership contracts with major airlines. As the major airlines faced bankruptcy SkyWest’s revenues became less predictable and more risky, even though the majors began to outsource routes to SkyWest. The bankruptcies also highlighted the risk within contracts with other airline companies. SkyWest had tried to partner with more major airlines; however those relationships have since ended. SkyWest
15 March 2013
GBA 490 Case Analysis
SkyWest, Inc. Competitive Analysis
Table of Contents
1. Executive Summary………………………………………………………………………...3 2. Competitive Analysis……………………………………………………………………….5 3. Recommendations………………………………………………………………………….7 4. Appendix…………………………………………………………………………………...9 5. Sources……………………………………………………………………………………22
Executive Summary
This report examines the factors pertaining to SkyWest, Inc. (referred to in this document as SkyWest) and its response to all forces present in the airline industry. Analytical tools used in this report are: * An analysis of the airline industry macro-environment * A Five-Forces model of the pressures in the airline industry * A study of the drivers of change and industry dynamics * Identification of SkyWest’s main rivals * The airline industry’s key success factors * A strategic group map of the industry * An analysis of SkyWest’s strategy and business model including financial performance * An identification and critique of SkyWest’s strategy * A comparative weighted assessment of SkyWest’s competitive advantage * An analysis of SkyWest’s strengths, weaknesses, opportunities, and threats (SWOT)
Conclusion: This report concludes that SkyWest is a strong industry leader because of excellent reputation for being efficient and agreements with other airlines. However, because of contracts with the other airlines SkyWest is not immune to the same issues that affect the industry as a whole. As of 2009 SkyWest primarily operated through partnership contracts with major airlines. As the major airlines faced bankruptcy SkyWest’s revenues became less predictable and more risky, even though the majors began to outsource routes to SkyWest. The bankruptcies also highlighted the risk within contracts with other airline companies. SkyWest had tried to partner with more major airlines; however those relationships have since ended. SkyWest